CLAUSE PRECLUDES COVERAGE FOR DEFECTIVE WORK

The Court of Appeals of Washington found that an exclusionary clause in a comprehensive general liability (CGL) insurance policy did not cover defective work on a road construction project. During construction of seismic retrofits for an expressway, Diamaco, Inc., was forced to replace structures containing defective epoxy. They complied, but not within contract-specified time limits. The city sought damages for the delay and other expenses. Diamaco was covered by a CGL policy, but had agreed, as a term of the policy, to obtain separate insurance for the expressway project. Diamaco sued its insurer, seeking a declaration from the court that the CGL policy covered the city's claim. The trial court ruled against Diamaco. The appellate court said that evidence showed that Diamaco had agreed to provide separate insurance and because of that, coverage under the policy was barred by the exclusionary clause.

Language

  • English

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Filing Info

  • Accession Number: 00789045
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 27 2000 12:00AM